Finding A Job After The Financial Meltdown

In what may be termed as a sigh of relief for the US economy and the forex world, a marginal change in joblessness claim numbers suggested that all isn’t lost for the US economy. The positive news comes out of a fall in jobless claims filed from 432000 a month ago to 404000 recently. This suggests that some more Americans have become employed and that employment generation hasn’t come to a grinding halt. For the US economy to get back on tracks it is important that the number of unemployed falls. This is the most important remedy for increasing the disposable income at the hands of the US consumer and increase demand. A separate report also noted that the US economy grew at an annualized rate of 2 per cent in the third quarter of this year. While this is larger than the 1.3% rate of increase for the second quarter, it is too less to generate employment in substantial numbers. However, in the least it suggests that the US has managed in order to prevent a second recession. This seemed to become a possibility just sometime back. best payday loans online ohio, for related posts..

Other reports suggested that the US trade deficit to $45.61 billion in August from $45.63 billion in July. A falling trade deficit can result either from a fall in imports or a rise in exports. Falling imports wouldn’t necessarily serve as a good sign as it represents weak demand. Rising exports on the other hand, could be a boost to the US economy and forex trading industry and could even serve as a good development. The latter seems to true and it’s the demand from growing economies that is helping US economic growth and acting as a counterbalancing measure to the reduction of domestic demand. However, rising economic uncertainty in the Euro area and in the US has made investors move out of riskier investments to take shelter in the trunk have of the US dollar. This has led the US dollar to appreciate. This isn’t favorable for exports.

Taking a step back….

The real threat to US recovery now doesn’t appear to be internal as various economic indicators have shown some positivity over the past few months, even as they may be not at their best behavior. The real threat seems to be from the Euro debt crisis and the weak demand from the region as also any financial exposure that the US might have in the region.

The American consumers continued to be bearish in sentiment as could be gauged from the Bloomberg Consumer Comfort Index notwithstanding the improved situation on the joblessness front and the trade deficit. Colluding with the sentiment was a fall in consumer goods imports in August, suggesting that the amount of consumer confidence is weak and consumer spending is constrained.

From the above it is apparent that the US economy needs just a little of appropriate stimulus so as to kick start its economy, create demand and employment and lead it to a self feeding cycle, out of the current sticky situation it is stuck in.